Northamptonshire-based team Force India has posted accounts showing it made a net annual loss of £38.5m in the year to December 31, up from £33.4m the previous year.

The financial report noted that Force India Formula One Team Ltd received £17m during the year from its parent company, Luxembourg-registered Orange India Holdings Sarl.

The Force India team is jointly owned and controlled by Indian businessmen Vijay Mallya and Subrata Roy, along with Dutch entrepreneur Michiel Mol, through their Sahara Adventure Sports and Watson investment vehicles, which own the majority of Orange India Holdings.

Auditors Grant Thornton highlighted the funding Force India received from Orange India Holdings as a cause for concern.

Referring to Force India’s losses and net liabilities of £49.1m, Grant Thornton said: “These conditions indicate to us that the continued support of the company’s parent, Orange India Holdings... is necessary if the business is to continue as a going concern.

“There is no evidence available to us to confirm that Orange India will receive the continued support it needs from its shareholders and in turn that that continued support will therefore be available to Force India Formula One Team.

“This material uncertainty may cast significant doubt about the company’s ability to continue as a going concern.”

The cost of keeping a mid-tier team racing is reported to hit £120m (£75m) a year

Formula 1 racing is currently in crisis as the huge costs of the high-octane sport take their toll on smaller competitors.

Marussia has shut up shop, experts have questioned whether Caterham’s last-ditch attempt to raise the money it needs will succeed and Force India, Lotus and Sauber – the three smallest remaining teams – were rumoured to have considered boycotting last week’s US grand prix as concerns over how the sport’s prize money is divided.

Speaking ahead of the US event, Formula 1 boss Bernie Ecclestone said: “The problem is that there is too much money being distributed badly. We have to decide the best way to sort this whole thing out. Frankly, I know what’s wrong but don’t know how to fix it.”